Can only login to failsafe mode

When trying to login, I see an xterm and get the message "it seems your x session only lasted 10 seconds or less ..".
I can however login failsafe, but that just doesnt cut it. Ive looked around for clues in logs, but noly thing I find is:

(EE) RADEON(0): Failed to parse MetaModes or no modes found. MergeFB mode disabled.

I'm not sure what window manager to expect, or even how to choose one (after installed).
One user said it could have to do with GDM not having permission to initialize on display.

1) What could be the problem here?
2) How to set the wmanager?

The short story what happened previous to my problem:
I was ordered to setup test server identical to our live ones. I was asked to specificlly use
a .tgz of one of the live servers. I installed it using a livecd, then configured all HW and some
systsem settings like hostname, networking etc. I use correct module for GFX card, ati.

 

Which distribution do you use? Do you use Beryl or Compiz(fusion)?
What's in /etc/X11/xorg.conf?

 

No beryl nor compiz. CentOS 4.4. I notice now that I have double entries of screen, device and monitor. Could this be it?

01:01.0 VGA compatible controller: ATI Technologies Inc ES1000 (rev 02)
I cut some font settings etc from xorg.conf, most is here;

Section "ServerLayout"
Identifier "X.org Configured"
Screen 0 "Screen0" 0 0
InputDevice "Mouse0" "CorePointer"
InputDevice "Keyboard0" "CoreKeyboard"
EndSection

Section "Module"
Load "extmod"
Load "dbe"
Load "xtrap"
Load "glx"
Load "record"
Load "vnc"
Load "dri"
Load "type1"
Load "freetype"
EndSection

Section "Monitor"

#DisplaySize 280 210 # mm
Identifier "Monitor0"
VendorName "CPQ"
ModelName "COMPAQ S510"
HorizSync 30.0 - 61.0
VertRefresh 50.0 - 120.0
Option "DPMS"
EndSection

Section "Device"
Identifier "Card0"
Driver "ati"
VendorName "ATI Technologies Inc"
BoardName "Unknown Board"
BusID "PCI:1:1:0"
EndSection

Section "Screen"
Identifier "Screen0"
Device "Card0"
Monitor "Monitor0"
SubSection "Display"
Viewport 0 0
Depth 1
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 4
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 8
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 15
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 16
EndSubSection
SubSection "Display"
Viewport 0 0
Depth 24
EndSubSection
EndSection

Section "ServerLayout"
Identifier "Default Layout"
Screen 0 "Screen0" 0 0
InputDevice "Mouse0" "CorePointer"
InputDevice "Keyboard0" "CoreKeyboard"
EndSection

Section "Monitor"
Identifier "Monitor0"
VendorName "Monitor Vendor"
ModelName "900/950SL +"
DisplaySize 360 270
HorizSync 30.0 - 110.0
VertRefresh 50.0 - 160.0
Option "dpms"
EndSection

Section "Screen"
Identifier "Screen0"
Device "Videocard0"
Monitor "Monitor0"
DefaultDepth 16
SubSection "Display"
Viewport 0 0
Depth 16
Modes "1024x768"
EndSubSection
EndSection
Section "Device"
Identifier "Videocard0"
Driver "ati"
VendorName "Videocard vendor"
BoardName "ATI Technologies Inc ES1000"
EndSection

 

Remove the double sections and reboot the system.